Axion International (OTCBB: AXIH), the developer of Recycled Structural
Composite (RSC)™ technology that is used to produce 100% recycled
plastic ECOTRAX™ railroad ties and STRUXURE™ industrial building
materials and Coll Materials are pleased to announce an increase in
production capabilities. In June of 2011 Axion signed a contract
manufacturing agreement with Coll Materials to expand the company’s
output and to do so at Coll’s Southwest location in order to
strategically service Axion’s growing customer base.

Coll Materials is dedicating a second production line in their Waco, TX
plant giving Coll the capacity to produce approximately 200,000 ECOTRAX™
rail ties annually for Axion. The production line is on schedule and
will be operational by Q2, 2012.

“Our rail business continues to grow across multiple customers around
the globe, and this additional capacity is needed to meet growing
demand,” said Axion CEO and President, Steve Silverman. “Our
relationship with Coll has grown since we first announced this
partnership. Like any manufacturing start-up we’ve had our share of
challenges and Coll has been a good partner and stepped up to make sure
we met them head-on,” Silverman continued. “As we grow we must remain
quality oriented. Too many companies grow too fast and cannot put out a
consistent product. We refuse to make that mistake. With this expansion
we will be recycling up to 37 million pounds of waste plastic that would
otherwise wind up in landfills.”

“Contract manufacturing has been a great avenue to supplement our
recycling business. We are pleased to be working with another green
company and look forward to growing our capabilities to meet the demands
that Axion’s product brings,” said Coll Materials CEO and President
Brian Coll.

Axion ECOTRAX™ ties are the prefect “green” solution for the rail
industry – made using Axion’s patented formula. The virtually
indestructible ties thrive in extreme, wet, and caustic conditions.

About Coll Materials

Company CEO Brian Coll started Coll Materials in 2008 as a one man
operation brokering plastic materials for plastic recyclers from his
home office in Cambridge, OH. Six months later, the company had become
profitable enough to take the next step from plastic brokering to a
small plastic recycling operation. Coll Materials then leased a building
in Byesville, OH to house two small plastic recycling lines and
warehouse both raw and finished materials. In April of 2009 Coll
Materials acquired another plastic recycling company, Regrind Services,
a Detroit, MI based recycler serving the Midwest for over 14 years. In
July of 2009, Coll Materials moved all equipment from the Midwest under
one roof to Zanesville, OH. In 2011, Coll Materials acquired Nicos
Polymers, establishing a plant in Allentown, PA and opened a new
facility in Waco, TX.

For more information on buying or selling plastic, please visit www.collmaterials.com
or call 740-452-5691.

About Axion International Holdings, Inc.

Axion International Holdings, Inc. (OTCBB: AXIH.OB)
develops structural building products in the United States and
internationally from 100% recycled consumer and industrial plastics. It
offers structural composite railroad crossties, structural composite
I-beams, tongue-and-groove planking, and various sizes of boards for use
in engineered design solutions, such as rail track, rail and tank
bridges, pedestrian and recreation bridges, marinas, boardwalks, and
bulk heading. The Company markets its structural products to the
railroad industry, military, and industrial engineering and contracting
firms. Axion International Holdings, Inc. was founded in 2006 and is
headquartered in New Providence, New Jersey.

This release contains "forward-looking statements" for purposes of the
Securities and Exchange Commission's "safe harbor" provisions under the
Private Securities Litigation Reform Act of 1995 and Rule 3b-6 under the
Securities Exchange Act of 1934. These forward-looking statements are
subject to various risks and uncertainties that could cause Axion’s
actual results to differ materially from those currently anticipated,
including the availability of materials at favorable pricing, sufficient
manufacturing capability and the risk factors identified in Axion’s
filings with the Securities and Exchange Commission.